The statement of cash flows, also known as the cash flow statement, summarizes a company's sources and uses of cash. The net cash flow is the difference between a company's cash inflows and outflows.

Discover why operating cash flow is a more reliable metric than net income for assessing financial health and avoiding accounting manipulation risks.

In the table above for the annual income statements of Apple (Nasdaq: AAPL) from 2017 to 2021, the top line item for revenue is labeled net sales. Moving down on the income statement, items are ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. David Kindness is a Certified Public ...

Companies that use accrual basis accounting can assemble their statement of cash flows in one of two ways, using either the direct method or the indirect method. The more commonly used indirect method ...

Cash flow is essential to running a successful business. Understanding your company’s liquidity is nonnegotiable, and a cash flow statement gives you clear visibility into how money moves through your ...

FCFE shows a company's money left after paying bills, essential for assessing financial health. To calculate FCFE: net income + depreciation - capex - working capital + net debt. Positive FCFE ...

Turnover is vanity, profit is sanity, and cash flow is reality. Cash is the lifeblood of a healthy business. Check how you’re doing with our cash flow calculator. Even the most profitable companies ...